Correlation Between Canaf Investments and Mammoth Resources
Can any of the company-specific risk be diversified away by investing in both Canaf Investments and Mammoth Resources at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Canaf Investments and Mammoth Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaf Investments and Mammoth Resources Corp, you can compare the effects of market volatilities on Canaf Investments and Mammoth Resources and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Canaf Investments with a short position of Mammoth Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaf Investments and Mammoth Resources.
Diversification Opportunities for Canaf Investments and Mammoth Resources
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canaf and Mammoth is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Canaf Investments and Mammoth Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mammoth Resources Corp and Canaf Investments is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Canaf Investments are associated (or correlated) with Mammoth Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mammoth Resources Corp has no effect on the direction of Canaf Investments i.e., Canaf Investments and Mammoth Resources go up and down completely randomly.
Pair Corralation between Canaf Investments and Mammoth Resources
Assuming the 90 days horizon Canaf Investments is expected to generate 1.72 times less return on investment than Mammoth Resources. But when comparing it to its historical volatility, Canaf Investments is 3.69 times less risky than Mammoth Resources. It trades about 0.14 of its potential returns per unit of risk. Mammoth Resources Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Mammoth Resources Corp on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Mammoth Resources Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaf Investments vs. Mammoth Resources Corp
Performance |
| Timeline |
| Canaf Investments |
| Mammoth Resources Corp |
Canaf Investments and Mammoth Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaf Investments and Mammoth Resources
The main advantage of trading using opposite Canaf Investments and Mammoth Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaf Investments position performs unexpectedly, Mammoth Resources can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mammoth Resources will offset losses from the drop in Mammoth Resources' long position.| Canaf Investments vs. Dream Industrial Real | Canaf Investments vs. Western Copper and | Canaf Investments vs. Magna Mining | Canaf Investments vs. Metalero Mining Corp |
| Mammoth Resources vs. PyroGenesis Canada | Mammoth Resources vs. Solar Alliance Energy | Mammoth Resources vs. Braille Energy Systems | Mammoth Resources vs. BMO Aggregate Bond |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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